On Wednesday, Equinor withdrew from an offshore wind project in the US. Here at home, the Ministry of Energy has moved the tentative date for the first Norwegian offshore wind auction.
Energy Minister Terje Aasland (Ap) has postponed Norwegian offshore wind deadlines several times. Photo: Gorm Kallestad / NTBPublished: Published:
Right now
According to a demand from the Storting, the government should have allocated areas for offshore wind as early as 2023.
It hasn’t happened. Deadlines have been postponed repeatedly.
Now it appears that the upcoming offshore wind auction for a fixed-bottom area called Sørlige Nordsjø II will be postponed.
The Ministry of Energy informs E24 that a tentative date for the auction, where companies will compete for development, is February/March.
In November, the tentative auction date was February.
Senior advisor Stine Grimsrud in the Ministry of Energy. Photo: Ministry of Energy
– The timing has always been tentative. We are now working on going through the applications for pre-qualification thoroughly, says senior adviser Stine Grimsrud in the ministry.
In November, seven players showed interest in Norway’s first large offshore wind farm. It is these actors that are now being assessed. Nevertheless, it may appear that only five of them will qualify.
– If fewer than six applicants can be prequalified, we will consider whether the auction should be carried out. And if there is an auction, we will come back to the date on which it will be carried out, says Grimsrud.
Drops sea breeze and postpones deadlines
– There is reason to fear the development, says Storting politician Ove Trellevik in the Conservative Party.
On Wednesday evening, it became known that Equinor is withdrawing from an offshore wind contract in New York. This is due to “changed financial circumstances”.
Høyre’s Ove Trellevik is a member of the energy and environment committee in the Storting. Photo: Vidar Ruud / NTB
– The interest seems less than it once was. The costs are skyrocketing and there is great uncertainty in the market, says Trellevik.
The government has also postponed an application deadline to develop floating offshore wind in Norway at an area called Utsira Nord.
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The Ministry of Energy informs E24 that they will come back with an application deadline for this project during the first quarter of this year.
Costs have increased by 40 per cent
Olav Johan Botnen of the company Volt Power Analytics has previously stated to E24 that there is “a low probability that there will be a successful auction” in Norway without the economic framework conditions improving significantly.
In just one year, the costs of developing offshore wind have increased by around 40 per cent.
These have applied to develop offshore wind in Sørlige North Sea II:
- Aker Offshore Wind, BP and Statkraft
- Equinor and RWE
- Chinese Mingyang Smart Energy
- Norseman Wind and German EnBW)
- Belgian Parkwind, the Ikea group’s investment company Ingka and Norsea
- Shell and the Norwegian power companies Lyse and Eviny
- Hydroelectric Corporation
Sea view
A number of projects outside both the US and the UK have been abandoned due to price gouging in recent months.
The Danish wind power giant Ørsted has written down values by DKK 45 billion.
Offshore wind developments are halted or postponed. Here from Swedish Vattenfall’s project in the Netherlands. Photo: Skjalg Böhmer Vold / E24
An auction in the UK in September received no bids at all.
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Companies can apply directly
In addition to the bottom-fixed offshore wind field Sørlige Nordsjø II and the floating field Utsira Nord, a majority in the Storting favored the direct allocation of offshore wind area last year.
This is for companies that want to electrify oil platforms.
This means that companies themselves will be able to propose projects, and be allocated land directly, and not through a competition as the large fields require.
Equinor’s Trollvind project was the only one at the time that was relevant for such a direct allocation. But afterwards, the company has decided to put the project on hold. The reason is, among other things, increased costs.
Grimsrud in the Ministry of Energy says that the processing of such cases will depend on the specific project. Who are the rights holders and the available existing infrastructure will help decide whether a company gets a yes.
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2024-01-04 21:14:46
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